Question

A furniture retailer have a couch and a love seat on sale at a final closeout price of $1999. It was originally priced at $3,799. It went through a series of markdowns to arrive at this final closeout price. The retailer purchases the table and chairs for $699 from its vendors overseas. Question 8 4 pts What is the initial markup on the item? (Note: Please provide the numerical answer - no dollar sign needed. Final answer has no decimal points. Question 9 4 pts What is the initial markup percentage at retail on the item?

two questions

Answer 1

Initial cost - $ 699

Initial sales price - $ 3,799

Initial Gross profit = Sales Price - cost = $3,799 - $ 699 = 3100

Mark up is $ 3,100

Mark up ratio= Gross profit / cost * 100 = 3100/699*100 = 443%